What is amazing in this whole discussion is that people are still wasting their time on discussing a trade which is described as "risk-free...
Making $450 on FB puts after the worst single stock decline in history? What was the probability of this happening, and how many losing trades he...
Not going to happen.
I'm sorry I got sucked into this pointless discussion. I should have known better who I am dealing with. I guess if people like you are considered...
@Robert Morse is not really a good example. I'm pretty sure he paid a lot to get the level of knowledge he has. And I'm pretty sure he would not...
Here are some quotes from the articles I linked: "A straddle consists of buying or selling both a call and a put of the same strike. Usually...
Absolutely. Once again, this was my whole point from the very beginning.
ATM straddles are non directional. OTM straddles are directional, and will benefit from the move in the right direction, and be hurt if the stock...
Well, not really. Here is the chart of ATM 1232.5 straddle placed on the close yesterday: [ATTACH] 1 sigma on Thursday (T+1) is around 1218....
1 sigma is not a static strike. It could be 1195 tomorrow, or much lower next week. 1 sigma depends on the timeframe. 30 points move in one day...
Your original question was not if the stock drops to 1200. It was if the stock drops 1 sigma. Two different things. 1 sigma drop could be much...
@destriero you just proved my point. With the stock at 1225: 1. 1225 straddle will make money if the stock moves 1SD. 2. 1200 straddle will lose...
That depends on many factors, such as: when it happens, the change in IV etc. But since the 1200 straddle is currently delta positive, your...
Yes, but many times if the stock moves enough, you can close the trade for a profit. The point is that I don't need to guess the direction. I can...
With the stock at 1223, the 1200 straddle is slightly bullish. For a 1200+ stock, this is not a big deal, but obviously 1225 would be completely...
Long straddle IS a non directional strategy. Here are some references from few well respected sources: The Best Non-Directional Options Trading...
FB would probably make it into your list before the last cycle. It was consistently moving less than the expected move, so selling strangles would...
@destriero Unfortunately, people like you tend to hide behind the anonymity of the internet in order to insult and attack other people. They post...
Right. Keep comparing directional calendar held through earnings with non directional calendars closed before earnings.
The trade was up 17% even when the stock was around 260: [ATTACH]
Separate names with a comma.